The ALI Restatement – What Lies Ahead?
July 30, 2018 —
Adam M. Berardi & Sara C. Tilitz - Complex Insurance Coverage ReporterThe American Law Institute voted on May 22, 2018 to approve the final draft of its “Restatement of the Law of Liability Insurance.” This was the culmination of an eight-year project that evolved through 29 drafts resulting in a nearly 500-page final product. At least nine courts cited to the Restatement while it was still in draft form. On June 28, 2018, White and Williams LLP had the privilege of hosting a seminar about the Restatement, chaired by the Reporter for the Restatement, University of Pennsylvania Law Professor Tom Baker, and Randy Maniloff of White and Williams, author of “General Liability Insurance Coverage, Key Issues In Every State.” The seminar was geared toward assisting members of the liability insurance community in navigating the key provisions of the Restatement, including how they compare and contrast with existing case law and the role the Restatement may play in courts’ decision-making processes going forward.
Reprinted courtesy of
Adam M. Berardi , White and Williams, LLP and
Sara C. Tilitz, White and Williams, LLP
Mr. Berardi may be contacted at berardia@whiteandwilliams.com
Ms. Tilitz may be contacted at tilitzs@whiteandwilliams.com
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Predicting the Future of Texas’s Grid Is a Texas-Sized Challenge
June 27, 2022 —
Nathaniel Bullard - BloombergA little more than a year after a paralyzing winter freeze, the Texas power market just experienced the stress of extreme heat. Last week, power prices in Houston briefly jumped above $5,000 per megawatt-hour as high temperatures coincided with a number of generators being offline for maintenance.
Yet a few days earlier, power prices in west Texas had been negative $883 dollars per megawatt-hour, because at the time wind generation was abundant and demand was low.
“Dynamic” is one way to describe the price swings within the Electric Reliability Council of Texas (Ercot), the grid that provides the majority of the state’s power. “Jarring” or “terrifying” might be other words for it, particularly for those buying power in the spot market.
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Nathaniel Bullard, Bloomberg
Colorado’s Abbreviated Legislative Session Offers Builders a Reprieve
October 26, 2020 —
David M. McLain – Colorado Construction LitigationWould you believe me if I told you that this year could have been worse for builders? Had COVID-19 not hit, the Colorado Legislature may have passed bills that would have had a severely negative impact on the home building industry. In response to the COVID-19 pandemic, the Legislature temporarily adjourned in mid-March, 67 days into the 120-day legislative session. After a two-month recess, the Legislature returned for approximately one month to pass critical bills including the state budget, the school finance act and what to do with the money from the federal CARES Act. Of the bills on the calendar when the Legislature temporarily adjourned, legislators focused on those that were “fast, free, and friendly,” and let the others fall by the wayside.
Bills that died included SB 20-138, which would have extended Colorado’s statute of repose for construction defect claims from six plus two years to 10 plus two years. The bill also contained a number of accrual and tolling provisions, which would have made it harder for builders to convince tribunals that claims were untimely. This bill died on the Senate floor, for lack of support. We will see whether plaintiffs’ attorneys will revive this effort next year.
SB 20-093, while not an outright ban on arbitration or a legislative overturning of the Vallagio decision, would have made it harder to administer and more difficult to get cases into arbitration. The bill died under the “fast, free, and friendly” test, i.e., it faced too much opposition. I expect to see this bill again next year, in some form.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
CGL Insurer’s Duty to Defend Insured During Pre-Suit 558 Process: Maybe?
December 20, 2017 —
David Adelstein - Florida Construction Legal UpdatesIn earlier postings, I discussed the issue of whether Florida Statutes Chapter 558′s pre-suit construction defects process triggers a CGL insurer’s duty to defend. The issue was whether Florida’s 558 pre-suit notice of a construction defect and repair process met the definition of “suit” within a standard CGL policy.
A standard CGL policy defines the term “suit” as:
“Suit” means a civil proceeding in which damages because of “bodily injury,” “property damage” or “personal and advertising injury” to which this insurance applies are alleged. “Suit” includes:
a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or
b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Insurer's Bad Faith is Actionable Tort for Purposes of Choice of Law Analysis
January 08, 2024 —
Janeen M. Thomas - Saxe Doernberger & Vita, P.C.When an insurer handles a claim in violation of its duty to act in good faith, policyholders are often eager to sue the insurer for bad faith, seeking extra contractual damages. Before filing suit, however, it is critical that policyholders consider what state’s law applies to the bad faith claim.
In the recent case of Scott Fetzer Co. v. Am. Home Assurance Co., Inc.1, the Ohio Supreme Court held that Restatement (Second), Conflict of Laws, § 145 (“Section 145"), governed the choice of law dispute, which meant that the insured would be able to obtain discovery of Travelers’ claims-handling procedures, guidelines, internal documents, and communications relating to the claim.2 The insured, Scott Fetzer, argued that the materials were discoverable because documents evidencing an insurer’s bad faith are not protected by attorney-client privilege in Ohio. In response, Travelers argued that the laws of either Indiana (the place where the parties entered into the insurance contract), or Michigan (the location of the insured risk) governed the discovery dispute because Restatement (Second) § 193 (“Section 193”) governs the choice of law analysis for claims that “arise out of insurance contracts.”3 The laws of either Indiana or Michigan were more favorable for Travelers because Indiana does not allow discovery of materials covered by attorney-client privilege, and Michigan does not even recognize a cause of action for bad faith.
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Janeen M. Thomas, Saxe Doernberger & Vita, P.C.Mr. Thomas may be contacted at
JThomas@sdvlaw.com
Colorado House Bill 20-1290 – Restriction on the Use of Failure to Cooperate Defense in First-Party Claims
May 18, 2020 —
David M. McLain – Colorado Construction LitigationOn February 7th, Representative Garnett, with Senator Fenberg as the Senate sponsor, introduced HB 20-1290, concerning the ability of an insurer to use a failure-to-cooperate defense in an action in which the insured has made a claim for insurance coverage.
If the bill were to pass, in order to plead or prove a failure-to-cooperate defense in any action concerning first-party insurance benefits, the following conditions must be met:
- The carrier has submitted a written request for information the carrier seeks to the insured or the insured’s representative, by certified mail;
- The written request provides the insured 60 days to respond;
- The information sought would be discoverable in litigation;
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Washington Supreme Court Upholds King County Ordinance Requiring Utility Providers to Pay for Access to County’s Right-of-Way and Signals Approval for Other Counties to Follow Suit
March 02, 2020 —
Kristina Southwell - Ahlers Cressman & Sleight PLLCOn December 5, 2019, the Washington State Supreme Court released its opinion in King County v. King County Water Districts, et al.,[1] upholding King County’s Ordinance 18403, which requires utility companies who are franchise grantees to pay “franchise compensation” for their use of the County rights-of-way. Generally, utility companies must apply for and obtain from the County a franchise permitting it to do necessary work in the County rights-of-way. [2] Previously, King County only charged an administrative fee associated with issuing such a franchise. But with the new franchise compensation charges, King County estimates that it will raise approximately $10 million dollars per year for its general fund.
Ordinance 18403 passed in November 2016 and was the first of its kind in the state. The ordinance created a rule, set forth in RCW 6.27.080, requiring electric, gas, water, and sewer utilities who are granted a franchise by King County to pay “franchise compensation” in exchange for the right to use the County’s rights-of-way. The rule provides that franchise compensation is in the nature of an annual rent payment to the County for using the County roads. King County decides an initial estimate of the charge by considering various factors such as the value of the land used, the size of the area that will be used, and the density of the households served. But utility companies can negotiate with the County over the final amount of franchise compensation.
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Kristina Southwell, Ahlers Cressman & Sleight PLLCMs. Southwell may be contacted at
kristina.southwell@acslawyers.com
Embattled SNC-Lavalin Files Ethics Appeal, Realigns Structure
May 01, 2019 —
Debra K. Rubin - Engineering News-RecordEven as Montreal design-build giant SNC-Lavalin Group Inc. faces corporate bribery charges on old Libya contracts, the firm now seeks, in an April 4 federal court appeal, to reverse Canadian prosecutors’ 2018 rejection of a negotiated settlement.
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Debra K. Rubin, ENRMs. Rubin may be contacted at
rubind@enr.com